Canada's verdict on a plan by Kinder Morgan Inc. to double the capacity of a crude pipeline will be made on its own merits and is not linked to Ottawa's approval of a LNG project, a senior official said on Sept. 28.
In its first major energy policy decision since taking power last November, the Liberal government on Sept. 27 granted a permit to Malaysia's Petronas and partners to construct the LNG plant in the province of British Columbia.
The federal government now has until Dec 19 to decide whether Kinder Morgan can twin its Trans Mountain Pipeline from the oil sands of Alberta to the British Columbia coast. Environmentalists strongly oppose the idea.
"Kinder Morgan will be decided on its own merits. There is no linkage between these projects," Energy Minister Jim Carr told reporters.
The Trans Mountain twinning would allow producers to transport more crude to tidewater, where they can get higher prices. Canadian crude trades at a discount, in part because of pipeline capacity shortages.
Carr, referring to the Petronas approval, said Canada understood the needs of energy markets.
"There is a thirst for Canadian natural resources internationally. And what this decision shows is that we are being responsive to that need," he said.
Recommended Reading
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Analysts: Diamondback-Endeavor Deal Creates New Permian Super Independent
2024-02-12 - The tie-up between Diamondback Energy and Endeavor Energy—two of the Permian’s top oil producers—is expected to create a new “super-independent” E&P with a market value north of $50 billion.
Is Grayson Mill the Next Bakken Domino to Fall After Chevron-Hess?
2024-01-31 - As E&Ps look to bulk up outside of the Permian Basin, EnCap-backed Bakken player Grayson Mill Energy is reportedly exploring a sale valued around $5 billion.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
ConocoPhillips CEO Ryan Lance: Upstream M&A Wave ‘Not Done’ Yet
2024-03-19 - Dealmaking in the upstream oil and gas industry totaled $234 billion in 2023. The trend shows no signs of slowing, ConocoPhillips CEO Ryan Lance said at the CERAWeek by S&P Global conference.